Changes

The federal government did not have enough power to operate effectively in its foreign relations.  After the war, the British continued certain trade restrictions involving America, and America was powerless to do anything about it.  Americans continued to buy English imports at a furious rate, and this caused money to drain out of America.

The federal government did not have enough power to operate effectively in its foreign relations.  After the war, the British continued certain trade restrictions involving America, and America was powerless to do anything about it.  Americans continued to buy English imports at a furious rate, and this caused money to drain out of America.

In the Treaty of Paris, America had agreed to treat loyalists fairly and return their rights and belongings.  Congress asked the states to do this, but several disobeyed with no consequences.  Congress had no way to make the states obey the nation's commitment.

In the Treaty of Paris, America had agreed to treat loyalists fairly and return their rights and belongings.  Congress asked the states to do this, but several disobeyed with no consequences.  Congress had no way to make the states obey the nation's commitment.

The British used this violation of the treaty to justify keeping forces stationed near the Great Lakes.  America had claimed the territory where the British forts stood, but once again had no power to drive them out.  So the British in America prospered by trading for furs with the Indians, although the territory they used belonged to the United States.

The British used this violation of the treaty to justify keeping forces stationed near the Great Lakes.  America had claimed the territory where the British forts stood, but once again had no power to drive them out.  So the British in America prospered by trading for furs with the Indians, although the territory they used belonged to the United States.

The weakness of the government under the Articles of Confederation was overwhelmingly displayed in America's languishing foreign policy.

The weakness of the government under the Articles of Confederation was overwhelmingly displayed in America's languishing foreign policy.

From the beginning, the Confederation had financial troubles, and its attempts to correct its deficiencies only made its problems worse.  It attempts to gain money were uniformly unsound.  Congress borrowed money from foreign countries, made paper currency, and sold undeveloped western lands.  None of these tactics were effective.

From the beginning, the Confederation had financial troubles, and its attempts to correct its deficiencies only made its problems worse.  It attempts to gain money were uniformly unsound.  Congress borrowed money from foreign countries, printed paper currency, and sold undeveloped western lands.  None of these tactics were effective.

After the war, America had more that 35 million dollars in debt, and that number only continued to grow.  The money from the sale of western land was paltry.  I could have paid only one fourth of the government's current expenses! Taxes and requests for money from the states were to no effect.  The state governments were having financial difficulties of their own.   

After the war, America had more that 35 million dollars in debt, and that number only continued to grow.  The money from the sale of western land was paltry.  It could have paid only one fourth of the government's current expenses. There were no national taxes, and requests for money from the states were ignored.  The state governments were having financial difficulties of their own.   

So Congress turned to paper money, and began to issue it in large amounts.  Sudden inflation gave a brief image of prosperity, but as quickly as the money had inflated, it became worthless and was abandoned.  People returned to gold and silver coins as currency.  Since there was much less of this money than there had been of the printed money, rapid deflation occurred, causing a depression.

So Congress turned to paper money, and began to issue it in large amounts.  Sudden inflation gave a brief image of prosperity, but as quickly as the money had inflated, it became worthless and was abandoned.  People used European coins, made of gold or silver, as currency.  Since there was much less of this money than there had been of the printed money, rapid deflation occurred, causing a depression.

Some states tried similar tactics, and Rhode Island tried to force citizens to use its paper money.

Some states tried similar tactics, and Rhode Island tried to force citizens to use its paper money.